I went to Five Below for the first time and it was immediately clear why Gen Z loves it

Alex BitterJul 22, 2023, 16:30 IST

Five Below mimics the low prices of a dollar store, but the range of products is much wider than at Dollar General and Dollar Tree.Alex Bitter/Insider

Five Below is on track to open more than 200 new stores this year.
It was among the fastest-growing retailers in the US in 2022, alongside Dollar General and TJ Maxx.

What is Five Below, exactly?

That's what I asked myself when I first started writing about retail several years ago. I'd pass the retailer's stores in strip malls, but it wasn't immediately clear by looking at them what they sold. One retail industry analyst described the chain as a "toy store," but a skim of the company's website shows that it also has departments for beauty supplies, pet supplies, and clothing.

Complicating matters, the website says that it sells products with "extreme $1-$5 value, plus some incredible finds that go beyond $5."

And who is Five Below for?

"While our merchandise offering targets the preteen and teen demographics, our stores enjoy universal appeal," CEO Joel Anderson said on an earnings call in 2015. Both Gen Z as well as their parents, who are themselves millennials and Gen Xers, are Five Below's target shoppers, according to an investor presentation from May.

One thing is for sure. There are a lot of Five Below stores. The company opened 134 stores in the US last year, and it plans to open more than 200 new locations this year, executives told analysts at Jefferies last month. Right now, it operates about 1,400 stores.

Like dollar stores, Five Below has done well financially as inflation has squeezed consumers' budgets. Executives told Jefferies that "needs-based categories like candy, food, beverage, travel, and beauty performed well" as inflation remained high. The chain "remains attractive as consumers seek value," the analysts wrote.

I decided to check out a Five Below location for myself to see where the store fits into the broader retail world.

Are you a Five Below employee with a story idea to share? Reach out to Alex Bitter at abitter@insider.com or via encrypted messaging app Signal at +1-808-854-4501.

I decided to visit this Five Below store. It's located in a mall in Waldorf, Maryland, about an hour's drive South of Washington, DC.

Alex Bitter/Insider

Immediately after walking in, I found these wheelbarrows full of slingshots, bubble wands, and other toys. Maybe that retail analyst was right about toys after all.

Alex Bitter/Insider

The store was also bigger than I thought it would be. I was expecting a smaller space more similar to a Dollar General or Dollar Tree.

Alex Bitter/Insider

Like dollar stores, Five Below groups its products into specific price points. The toys in this display ranged from $1 to $3.25 each.

Alex Bitter/Insider

But contrary to the store's name, not everything was $5 or less. This light-up, razor-style scooter was $20.

Alex Bitter/Insider

I visited Five Below right before summer started, so there was plenty of seasonal merchandise, from these sippy cups...

Alex Bitter/Insider

...to these towels with fruit and sun prints.

Alex Bitter/Insider

There was also a wide selection of lawn toys, such as giant inflatable basketballs.

Alex Bitter/Insider

But there was also a lot of practical stuff in the store, such as this reusable mesh shopping bag.

Alex Bitter/Insider

There was also jewelry, including this display of "upcycled" earrings.

Alex Bitter/Insider

I'm not sure exactly what the recycled materials in these earrings were, but this whole selection was $5.

Alex Bitter/Insider

The health and beauty section reminded me of Walmart or a dollar store: There were a lot of basic personal care items, from hair combs and clips...

Alex Bitter/Insider

...to sunscreen and aloe vera...

Alex Bitter/Insider

...to toothpaste, shampoo, and other essentials.

Alex Bitter/Insider

There was also basic workout equipment, such as these dumbbells.

Alex Bitter/Insider

But the highlight of Five Below isn't toiletries. It was the random stuff I didn't need (but might think I need if I was a teen). Although, it looked cool.

Alex Bitter/Insider

No one needs a colorful ukulele, but for $5, I was tempted.

Alex Bitter/Insider

Even if the store wasn't all toys, the fun stuff kept catching my eye as I walked around.

Alex Bitter/Insider

Whether it was these plastic "headlight lashes"...

Alex Bitter/Insider

...or this light that can project a scene from Rick and Morty off the side of your car...

Alex Bitter/Insider

...there was a lot of unique merchandise on offer.

Alex Bitter/Insider

One thing I actually needed was a new charger for my phone. Five Below had a wide selection in varying lengths, colors, and plug types.

Alex Bitter/Insider

After several minutes of searching, I settled on this slightly sassy cable that states, simply, "nope."

Alex Bitter/Insider

Near the checkouts, I was surprised to see a robust selection of snacks, including several flavors of Pocky.

Alex Bitter/Insider

Specialty items, like this chocolate frog, were aimed at fans of specific franchises like Harry Potter.

Alex Bitter/Insider

There were also snacks I never knew existed, from these Dunkin' Donuts chocolates...

Alex Bitter/Insider

...to these mints tins for fans of Bob Ross and The Golden Girls.

Alex Bitter/Insider

There were also cold drinks, including several flavors of Liquid Death, an upstart canned water brand with a loyal following.

Alex Bitter/Insider

Phone charger and a few snacks in hand, I headed to the registers to check out.

Alex Bitter/Insider

On the way, I was hit with childhood nostalgia by this book of Highlights travel puzzles.

Alex Bitter/Insider

To me, Five Below seems like a great place to go with (or to shop for) kids. The experience reminded me a bit of a dollar store, but there were more toys.

Alex Bitter/Insider

Five Below seems like a more budget-friendly version of KB Toys, which was my store of choice at the mall 20 years ago...

Getty

...with a bit of Hot Topic mixed in to appeal to young adults.

Hot Topic

CEO Joe Anderson has compared his chain to another retailer: "It's like T.J. Maxx for kids," he told the Washington Post in 2018, with "a sense of discovery throughout the whole store."

Visiting TJ Maxx in Upland.Danielle Bauter

CEO Joe Anderson has compared his chain to another retailer: "It's like T.J. Maxx for kids," he told the Washington Post in 2018, with "a sense of discovery throughout the whole store."

I'm clearly not the target demographic. But I was still able to find a few things that appealed to me. Perhaps that speaks to the success that the chain has had so far.

Five Below mimics the low prices of a dollar store, but the range of products is much wider than at Dollar General and Dollar Tree.Alex Bitter/Insider

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I went to Five Below for the first time and it was immediately clear why Gen Z loves it

I decided to visit this Five Below store. It's located in a mall in Waldorf, Maryland, about an hour's drive South of Washington, DC.

Immediately after walking in, I found these wheelbarrows full of slingshots, bubble wands, and other toys. Maybe that retail analyst was right about toys after all.

The store was also bigger than I thought it would be. I was expecting a smaller space more similar to a Dollar General or Dollar Tree.

Like dollar stores, Five Below groups its products into specific price points. The toys in this display ranged from $1 to $3.25 each.

But contrary to the store's name, not everything was $5 or less. This light-up, razor-style scooter was $20.

I visited Five Below right before summer started, so there was plenty of seasonal merchandise, from these sippy cups...

...to these towels with fruit and sun prints.

There was also a wide selection of lawn toys, such as giant inflatable basketballs.

But there was also a lot of practical stuff in the store, such as this reusable mesh shopping bag.

There was also jewelry, including this display of "upcycled" earrings.

I'm not sure exactly what the recycled materials in these earrings were, but this whole selection was $5.

The health and beauty section reminded me of Walmart or a dollar store: There were a lot of basic personal care items, from hair combs and clips...

...to sunscreen and aloe vera...

...to toothpaste, shampoo, and other essentials.

There was also basic workout equipment, such as these dumbbells.

But the highlight of Five Below isn't toiletries. It was the random stuff I didn't need (but might think I need if I was a teen). Although, it looked cool.

No one needs a colorful ukulele, but for $5, I was tempted.

Even if the store wasn't all toys, the fun stuff kept catching my eye as I walked around.

Whether it was these plastic "headlight lashes"...

...or this light that can project a scene from Rick and Morty off the side of your car...

...there was a lot of unique merchandise on offer.

One thing I actually needed was a new charger for my phone. Five Below had a wide selection in varying lengths, colors, and plug types.

After several minutes of searching, I settled on this slightly sassy cable that states, simply, "nope."

Near the checkouts, I was surprised to see a robust selection of snacks, including several flavors of Pocky.

Specialty items, like this chocolate frog, were aimed at fans of specific franchises like Harry Potter.

There were also snacks I never knew existed, from these Dunkin' Donuts chocolates...

...to these mints tins for fans of Bob Ross and The Golden Girls.

There were also cold drinks, including several flavors of Liquid Death, an upstart canned water brand with a loyal following.

Phone charger and a few snacks in hand, I headed to the registers to check out.

On the way, I was hit with childhood nostalgia by this book of Highlights travel puzzles.

To me, Five Below seems like a great place to go with (or to shop for) kids. The experience reminded me a bit of a dollar store, but there were more toys.

Five Below seems like a more budget-friendly version of KB Toys, which was my store of choice at the mall 20 years ago...

...with a bit of Hot Topic mixed in to appeal to young adults.

CEO Joe Anderson has compared his chain to another retailer: "It's like T.J. Maxx for kids," he told the Washington Post in 2018, with "a sense of discovery throughout the whole store."

I'm clearly not the target demographic. But I was still able to find a few things that appealed to me. Perhaps that speaks to the success that the chain has had so far.